PRINCES GROUP (+) : Q1 in line, April better

Research evidence excerpt

PRINCES GROUP (+) : Q1 in line, April better

Refinitiv

Cash flow: Underlying free‑cash‑flow generation stayed robust at £34 million, delivering a conversion rate of 89% due

to sustained working‑capital discipline, procurement optimisation and an unwavering emphasis on cash conversion.

The Group’s balance sheet and liquidity profile grew stronger during the quarter, with net cash of £344 million

(£433 million when IFRS 16 liabilities are excluded) compared with £311 million (£395 million excl. IFRS 16) at

31 December 2025.

M&A activity remains vibrant, with an expanding pipeline of opportunities under evaluation. Management anticipates

completing at least one acquisition within the next few months, albeit with the usual caveat that definitive agreements

and regulatory approvals are required before deals are realised. The Group’s strong balance sheet and net‑cash

position provide substantial strategic flexibility to pursue value‑accretive growth without resorting to additional financing.

Outlook: Princes expects profitability to improve further through FY 2026, supported by the structural efficiency

measures introduced in FY 2025, ongoing synergy delivery and operational discipline. Food‑price inflation is projected

to rise later in the year, a development that should benefit Princes given the business value‑proposition. The prevailing

assumption is that the firm will be able to pass through cost increases, thereby preserving—or perhaps modestly

expanding—the percentage margin, especially if higher volumes are experienced as consumers switch to staples such

as those that make up much of the product portfolio.

Figure 1: Revenue progression as expected

Q1 Revenue by business Unit

Revenue by Business Unit in GBPm 1Q25 1Q26 yoy change

Foods 159.9 159.7 -0.1%